Tuesday, November 10, 2015
SRT CO-OPS, QUO VADIS?
Chaired by REP. CRESENTE "MR. CO-OP" PAEZ, the House Committee on Cooperatives Development , met last September 16, 2015.
(Rep. Paez had later filed his Certificate of Candidacy for Senator, as an Independent, but was adopted by the Liberal Party.)
This committee hearing was on the inquiry into the current financial status of SRT Tandag Agri-Fishery Multipurpose Cooperative (STAFMPC), and other SRT cooperatives similarly situated.
The inquiry also discussed the interventions and rehabilitation efforts undertaken by Quedan and Rural Credit Guarantee Corporation (Quedancor).
As reported in House Resolution 1491 on the subject, STAFMPC entered into a management contract with Quedancor, which included a loan grant of P8.40-million.
After several years of operation, STAFMC failed to fulfill its financial obligations to Quedancor. To date, the debt of STAFMPC has ballooned to P35.94-million, according to the report.
For its part, Quedancor cited that despite its loan modification program, STAFMPC admitted to being incapable of complying with its obligations; and that Quedancor has no funds for rehabilitation of STAFMPC.
STAFMPC reported that it had filed cases against several of its members for their non-payment of their loans.
The House Committee on Cooperatives Development recommended the following: 1) for STAFMPC to assign its collectibles to Quedancor; 2) for STAFMPC to improve its operations; 3) for the Cooperative Development Authority to assist STAFMPC in the dissolution of the cooperative.
(From: Committee Daily Bulletin, Vol. III, No. 25; September 16, 2015).